"I have determined that it is time to officially recognize Jerusalem as the capital of Israel," Trump said at a news conference Wednesday. "After more than two decades of waivers, we are no closer to a lasting peace agreement between Israel and the Palestinians."

The president said he is directing the State Department to begin the preparations needed to move the U.S. Embassy from its current home in Tel Aviv to Jerusalem. He did not say how long the preparations would take.

Israeli President Reuven Rivlin thanked Trump after the announcement, writing on Twitter that, "There is no more fitting or beautiful gift, as we approach 70 years of the State of Israel's independence."

Thank you @POTUS@realDonaldTrump. There is no more fitting or beautiful gift, as we approach 70 years of the State of Israel’s independence. Jerusalem is not, and never will be, an obstacle to peace for those who want peace.

By recognizing Israel’s claim to Jerusalem, Trump is seen by the Palestinians as siding with Israel on the most sensitive issue in the conflict. The Palestinians seek east Jerusalem — which Israel captured in 1967 — for their capital.

Abbas said the Palestinian leadership will meet in the coming days and consult with Arab leaders to formulate a response.

Meanwhile, the United Nations Secretary-General Antonio Guterres released a statement speaking out against "unilateral measures that would jeopardize the prospect of peace for Israelis and Palestinians."

"In this moment of great anxiety, I want to make it clear: there is no alternative to the two-state solution. There is no Plan B," he said. "It is only by realizing the vision of two states living side-by-side in peace, security and mutual recognition, with Jerusalem as the capital of Israel and Palestine, and all final status issues resolved permanently through negotiations, that the legitimate aspirations of both peoples will be achieved."

Guterres did not name Trump or mention the United States in his statement.

Trump maintained that his decision would not compromise the city’s geographic and political borders, which will still be determined by Israel and the Palestinians.

Ahead of Trump’s speech, Arab and Muslim leaders spoke about the potential for violence. In Gaza, hundreds of Palestinian protesters burned American and Israeli flags. They also waved Palestinian flags and banners proclaiming Jerusalem as their “eternal capital,” language that Israelis similarly use for their nation.

Jerusalem includes the holiest ground in Judaism. It’s also home to Islam’s third-holiest shrine and major Christian sites, and any perceived harm to Muslim claims to the city has triggered protests in the past, in the Holy Land and beyond.